Is a retirement bonus or incentive earnable compensation?

A payment made as an incentive to retire or terminate is not a payment for services provided, and is not earnable compensation.

Example:

A collective bargaining agreement authorizes a school district to pay employees a higher salary during the last two years of employment if the employee gives written notice of his or her intent to retire. Because the payment is in exchange for the agreement to retire and not for services, the payment is not earnable compensation.